Considering 30-days investment horizon, Herbalife Ltd. is expected to under-perform the China. In addition to that, Herbalife is 1.92 times more volatile than China Sky One Medical Inc.. It trades about -0.28 of its total potential returns per unit of risk. China Sky One Medical Inc. is currently generating about -0.02 per unit of volatility. If you would invest 34.00 in China Sky One Medical Inc. on April 26, 2012 and sell it today you would lose (3.00) from holding China Sky One Medical Inc. or give up 8.82% of portfolio value over 30 days.
Diversification
Good diversification
Overlapping area represents amount of risk that can be diversified away by holding Herbalife Ltd. and China Sky One Medical Inc. in the same portfolio (assuming nothing else is changed)